Despite seeing increases in net income and sales for the first quarter, TJX — parent company of TJ Maxx and Marshalls — experienced weakness in apparel sales and missed analysts’ expectations.
Net income for the quarter was $454.32 million, compared to $452.89 million from the prior-year quarter. Net sales increased 5% to $6.49 billion from $6.19 billion, but were weaker-than-expected — analysts were anticipating $6.6 billion.
Same-store sales remained flat.
“While sales were not as strong as we would have liked, predominantly in our apparel business, I was very pleased that overall business trends improved as the quarter progressed,” said CEO Carol Meyrowitz. “Further, our inventories and expenses were well managed, which helped protect our margins. We enter the second quarter in an excellent position. We like our lean inventory levels, which enable us to capitalize on the plentiful buying opportunities we are seeing in the marketplace and ship great fashions, brands and quality merchandise to our stores at amazing values. Additionally, we have exciting marketing initiatives planned to drive customer traffic. We are very confident in our ability to achieve our plans for the remainder of 2014 and beyond as we continue to bring value around the world.”